Factors Affecting Hrm

There are many factors that would affect human resource management.

However the main four are considered to be:

• Political climate
• Economic climate
• Company strategies
• Technological developments

Political Climate

The political climate can have a great affect on any business and subsequent business departments such as human resource management. If the government decides on spending cuts or increasing taxes on businesses then this will dramatically affect the running of the business. Department budgets may have to be trimmed or the department may even have to be completely scrapped.

Economic Climate

The economic climate can be closely associated with the political climate. However, it also includes how the banks are coping and if they are willing to lend to businesses. Again if the banks are cautious and so do not lend and in fact try and get their money back quicker, it can spell disaster for a business. This in turn, will mean big changes for how human resources in a company would be run.

Company Strategies

Companies will also have plans and strategies on how best to move forward. These will of course largely be determined by the two previous factors mentioned. Whatever the company choose to do, will definitely affect how the human resource management will perform.

Technological developments

Technological developments will greatly affect how human resource management departments conduct their business. Instead of having to bring staff in for physical meetings, they can now do video-calling, send emails or even SMS text messages

Political:- when the state of national politics dictate how HR or employment is going to take place or the political climate is either good/bad then this determines whether H is either going to recruit or not.
Economic: Adverse economic conditions in most cases lead to a freeze in recruitment or even downsizing since if a company is not doing well the it might need to cut down on HR so that it